1️. Rapid Growth Forecast
Co-branded credit cards are set to capture about 25% of the Indian credit card market by FY28, growing at a remarkable 35-40% CAGR. Currently, these cards hold a 12-15% market share.
2️. Why Co-branded Cards are Winning
These cards, issued by banks and marketed through popular brands like Flipkart, Amazon, and Swiggy, show higher activation (70%) and spend rates (1.2x) compared to traditional credit cards. This growth is fueled by stronger customer engagement and attractive rewards.
3️. Surging Popularity in India
Credit cards are becoming the go-to payment method for Indian households, doubling their share in personal consumption spending from 5% in FY21 to 10% by FY24.
4️. Ecommerce Driving Issuance
A significant 75-80% of co-branded cards are issued through ecommerce partnerships, making brands like Amazon and Flipkart key players in this segment.
5️. Balancing Risk & Rewards
While co-branded cards offer higher returns, banks must carefully manage risk to avoid spoiling their credit books. The RBI has imposed tighter regulations, ensuring that co-branding partners are limited to marketing and customer acquisition roles only.
6️. Regulatory Landscape
With the RBI tightening data security norms and enforcing strict disclosures, the future of co-branded credit cards will see more controlled growth, focusing on consumer protection.